Allan Happe, et al., v. PanCanadian Petroleum Company, et al.
Published: Oct. 28, 1995 | Result Date: Aug. 18, 1995 | Filing Date: Jan. 1, 1900 |Case number: CV535985 – $1,739,000
Judge
Court
Sacramento Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Jeffrey Finsley
(technical)
Floyd Clawson
(technical)
Edward Horan
(technical)
Defendant
Roland C. Bainer
(Clayson, Bainer & Saunders)
(technical)
Saeed Irini
(technical)
Facts
Plaintiffs own mineral interests in land located in Rio Vista, CA. They entered into an oil-and-gas lease with Chevron which assigned the lease to PanCanadian. The basic dispute was whether PanCanadian violated a covenant implied into the lease to protect the Plaintiffs' mineral interest by failing to safeguard Plaintiffs' natural gas reserves from wrongful depletion from a well drilled on adjacent property. All parties agreed that express terms of the lease concerning depletion were not violated.
Settlement Discussions
Plaintiffs contend they demanded $1,500,000 with and indication of movement; and Defendants made no offers. Defendants contend that Plaintiffs filed a settlement conference statement demanding $6,229,828; including $4,000,000 in punitive damages.
Damages
Failure to pay gas royalties. Two estimates were proposed by Plaintiffs: $1,739,000 for all Plaintiffs on royalty damages theory; $8,200,000 for all Plaintiffs on rescission theory. Defendants contended no evidence was introduced on how much, if any, gas actually migrated, but that even using Plaintiffs' formula, the maximum damages would have been $500,000.
Other Information
During trial, the Court ruled against Plaintiffs on fraud, concealment, punitive damages, emotional distress, and negligence causes of action. The Court has denied Defendant's motions for new trial and JNOV. The Court granted Plaintiffs' motion for prejudgment interest exceeding $1,000,000 as follows: $76,081 to Allan Happe; $76,081 to Hazel Happe; $152,163 to Glenda Smith; $334,758 to Carole Lynn; and $334,758 to Rheta Housman.
Deliberation
6 hours
Poll
9-3 (liability), 10-2 (damages)
Length
28 days
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